Things You'll Need:
- 5 Minutes to Read this Article
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Step 1
Stop Spending Money - If you want to get out of debt you need to stop spending money. I am not talking about your basic needs (food, clothing, shelter, and transportation). I am talking about the things that you simply want. You need to redefine necessity. Do you really need that $5 cup of coffee in the morning? Are you really so immature that you buy something that you cannot afford because "you deserve it"? Stop spending money on these kind of items for 2 weeks and you will realize how much money you have wasted over the past few years.
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Step 2
Create a Budget - If you truly have the desire to get out of debt you need a plan. Track all of your cash inflows and compare that amount to your cash outflows. If you have no idea how much you are spending, track it for a month. You should then be able to create a realistic budget. Debt reduction strategies are very simple to implement once you know where to start.
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Step 3
Pay off your debt - I know some people will tell you that some debt is "good debt". They will tell you that using other people's money is the path to riches. I would have to say that it is the path to the poor house. Image what you could do if you had no debt at all. You would not have to stay in that job that you hate just so that you could pay the mortgage. You could travel the world and work when you want to. Eliminate ALL of your debt and pay for your purchases in cash.
Comments
maryellen1001 said
on 11/24/2008 Great tips!